Reinsurance, Surcharges, Taxes, Credit Lines: Citizens Insurance Preps for Hurricane Season

Citizens Property Insurance Company CEO Tim Cerio indicated on Tuesday night during a property insurance online forum with Senate Democrats that the company may be unable to pay out claims following another catastrophic hurricane without the use of surcharges for policy holders and assessments on Floridian taxpayers.

In response to a question from The Capitolist regarding Citizens’ financial status, which was prompted following comments made by Gov. Ron DeSantis in April stating that the insurer could be insolvent, Cerio confirmed that the potential issue of handling claims is a significant worry for officials.

Cerio’s affirmation came after DeSantis suggested that if a major hurricane were to strike and impact numerous Citizens policyholders, the insurer might not have sufficient funds to cover the resulting claims.